Disclaimer: This content is provided for informational purposes only and does not intend to substitute financial, educational, health, nutritional, medical, legal, etc advice provided by a professional.
Paying bonus as an employer in India first happened during the First World War. In certain cases of industrial disputes demand for payment of bonus was also included. In 1950, the Full Bench of the Labour Appellate evolved a formula for determination of bonus. A plea was made to raise that formula in 1959.
Allocable surplus refers to the amount left after deducting specified expenses and prior charges from the available surplus. It is the basis for calculating the bonus payable to employees under the Payment of Bonus Act.
Calculating the allocable surplus involves several steps. Let's break it down:
The first step in determining the allocable surplus is to calculate the gross profit as per the Second Schedule of the Payment of Bonus Act. The Second Schedule provides a detailed formula for calculating the gross profit based on the financial statements of the employer.
After calculating the gross profit, the next step is to determine the depreciation under Section 6 of the Act. Depreciation is the reduction in the value of an asset over time due to wear and tear, obsolescence, or other factors. The Act specifies the method for calculating depreciation.
In addition to depreciation, the Act also allows for the calculation of development rebate or development allowance under Section 6. These are deductions that can be claimed by the employer for investments made in certain specified assets. The Act provides the method for calculating the development rebate or development allowance.
The next step is to calculate the direct taxes payable by the employer. This includes income tax and any other taxes that are directly levied on the employer's income. The Act provides guidelines for calculating the amount of direct taxes.
Finally, the allocable surplus is calculated by summing up the amounts calculated in the previous steps as specified under the third schedule to the Act. The third schedule provides the formula for determining the allocable surplus based on the gross profit, depreciation, development rebate or development allowance, and direct taxes.
Fringe benefits are additional perks or advantages provided to employees along with their regular wages or salary. These benefits can include medical insurance, retirement plans, paid time off, and other non-monetary benefits.
The Haryana Code on Wages Rules 2021 is a set of rules and regulations issued by the government of Haryana for the implementation of the Code on Wages Act, 2019. These rules provide guidelines for the payment of wages, calculation of bonus, and other related matters.
Managing different personalities in the workplace can be challenging. This field guide provides tips and strategies for dealing with quirky work personalities, including the perfectionist, the procrastinator, the gossip, and more.
Running a business involves various aspects, from managing finances and employees to marketing and operations. This section provides comprehensive resources and information to help you successfully run your business.
Disclaimer: This content is provided for informational purposes only and does not intend to substitute financial, educational, health, nutritional, medical, legal, etc advice provided by a professional.